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The recent Covid-19 pandemic has turned the world upside down with several businesses shutting shop owing to mounting losses. Yet, in these pandemic times, e-commerce is one twinkling star that has been gathering strength after strength.How has Direct Selling Experience via Amazon India helped small scale manufacturers of handicrafts or any other item of your choice during these pandemic times? As an external consultant, try to analyze the reasons behind the success of these small-scale manufacturers.Provide some statistics on how technology has made the lives of small-scale manufacturers simpler?In your opinion, do you see this as a future once the Covid-19 crisis gets over or do you see manufacturers trying to sell their handicraft/other products face to face again?
The table below shows information about the closed economy.
Real GDP (RM million) Aggregate Expenditure (RM million)
850 880
900 920
950 960
1000 1000
1050 1040
a) If the full employment level of income is RM1, 350 million,
i) state whether the above economy is facing an inflationary gap or deflationary gap. Give your reason.
ii) what is the effect of the gap that you named in [a(i)] to the above economy.
iii) calculate the required aggregate expenditure changes needed to eliminate the inflationary gap or deflationary gap.
b) If the full employment level of income is RM850 million,
i) state whether the above economy is facing an inflationary gap or deflationary gap. Give your reason.
ii) what is the effect of the gap that you named in [b(i)] to the above economy.
iii) calculate the required aggregate expenditure changes needed to eliminate the inflationary gap or deflationary gap.
What is the cost of debt capital given the following information?
Number of bonds = 1,000,000
Face value = 1,000
Current price = 1,100
Coupon rate = 9% semiannually
Years of maturity = 15 years
Every government is expected to perform some key economic roles to ensure sustainable development and improve welfare of the citizenry. Discuss the 4 key economic functions performed by the government of Ghana, indicating how satisfactory or not (with sufficient evidence backing your stands) the current government of Ghana has performed each role.
Assume that Mr. Binda is a speculator who buys a 90-day British Pound call option with a strike price of $27.02. Assume one option contract specifies 10,000 units and the current spot price as of that date is $26.87. Mr. Binda pays a premium of $0.05 per unit for the call option and no other charge (such as brokerage fee). Just on the expiration date, the spot rate of a pound reaches $27.18.
Required:-
a) Determine the profit or loss if the option is exercised,
b) Determine the value of the call option lithe option is exercised.
Suppose you are considering opening a deli in Rockville Centre. After looking at many potential locations, you find one which you believe is ideal. You purchase the location of a former CVS store. The purchase price of the building was $475,000. In addition, you need to invest another $200 to make the location suitable as a deli store. Assume these capital investments have an average life of five yrs with a $50,000 salvage value
You estimate your initial investment in working capital is $145,000. Assume going forward that net working capital is 25% of sales
You estimate first-year sales of $2,300,000 and you expect sales to increase at an annual rate of 2.3%. Your year 1 (2021) cost of goods (COGS) is estimated at 64% of sales and that percent declines 2% annually for the following four years.Your year 1 (2021) annual rent, utilities, insurance and other related costs (SG&A) is $175,000 per year and increases by $2,500 annually for the following four years.
Explain giving examples why it is cheaper to produce commodities in large scale.
The cost of capital is opportunity cost of finance. Explain
A company is expected to pay dividend of $6, $6, $6.50 over the next three years. A dividend of $7 is expected to be paid in the 4th year and in subsequent years it is anticipated that dividend will grow at 0.05%. If the required rate of return is 12%. Determine the value of the company's share. Will long term growth rate add value to the company if it is financed by retaining 30% of it's retained earnings.
a firms that holds cash beyond its minimum requirements is increasing its potential earnings . true or false ?
